ASEAN-Japan Business Meeting: Toward New Economic Growth Strategy

The 35^th ASEAN-Japan Business Meeting (AJBM), themed “Strengthening the effectiveness of ASEAN and Japan cooperation - Toward a new economic growth strategy” has been jointly held by the Vietnam Chamber of Commerce and Industry (VCCI) and the Keizai Doyukai (Japan Association of Corporate Executives) in Ho Chi Minh City, drawing the participation of more than 100 delegates from Japan and ASEAN countries and over 300 business leaders in Vietnam.

 

Lecturers who are executives of leading corporations in Japan and ASEAN countries briefed current economic development in their countries, in the region and in the world. Business leaders from Vietnam, Japan and other ASEAN countries met and exchange viewpoints on matters of common concerns to boost economic cooperation effectiveness between ASEAN and Japan in the context of global and regional economic fluctuations caused by the global economic crisis. The meeting actually became an opportunity for business communities in ASEAN, including Vietnam, and Japan to seek partners, helping create a harmonious business environment for mutually benefits to come to a commonly prosperous community.

 

Also at this meeting, the Vietnam - Japan Economic Partnership Agreement (VJEPA) officially took effect. Accordingly, taxes on many commodities exported to Japan will be reduced or scrapped. The two countries will look toward lifting investment barriers and harmonising intellectual property regimes and competition policies. Particularly, Japan pledged to eliminate 7,220 lines of taxes when the agreement came into effect while Vietnam stamped out 2,586 lines of taxes imposed on Japanese goods. Such Vietnamese goods as apparel, mechanical products, electric cables, computers, parts, woodwork, shrimps, flowers, durians, honey, etc. will be imposed zero tax.

 

However, according to the Vietnam Chamber of Commerce in Japan, with the ASEAN-Japan Comprehensive Economic Partnership (AJCEP) coming into effect from December 1, 2008, many Vietnamese goods have already been levied preferential tax rates when they are exported to Japan. At present, AJCEP was ratified by eight countries, excluding Indonesia, the Philippines and Cambodia while VJEPA was endorsed by all 11 countries. As VJEPA officially takes effect, businesses can compare and pick up lowest tariffs amongst AJCEP, VJEPA and MFN systems. VJEPA allows the free mobility of humans, products and capital on the pillar of free trade agreement (FTA). Thus, when VJEPA takes effect, Vietnam will be seen as a favourite investment destination for Japanese companies.

 

At present, seafood, apparel and footwear are three main exports to Japan. According to the Vietnam Textile and Apparel Association (Vitas), if apparel companies in Vietnam maintain the current export growth, export revenues of garments and textiles are expected to climb 18 per cent - 20 per cent to US$ 900 million - US$ 1 billion in 2009.

 

The two-way trade revenue between Vietnam and Japan reached US$16 billion in 2008, beating the target of US$15 billion set for 2010. The two nations expected the bilateral trade revenues to climb to US$18 billion in 2010.